Gremach Infra raises USD 50 million through FCCB

Gremach Infrastructure Equipments & Projects Ltd has announced that it has successfully placed an offering of USD 50 million 1% foreign currency convertible bonds. The bonds have tenure of five years and one day and are convertible into equity shares at a price of Rs 376.36 per share.

The FCCBs issue was oversubscribed by 60%. Bonds are expected to be listed on the Singapore Stock Exchange and closing is likely to take place on January 21, 2008 subject to requisite approvals having being obtained.

The Company intends to use the net proceeds raised from FCCB for its foray in to Oil Rig Business as may be permitted by Indian law and RBI regulations.

Mr. Rishi Raj Agarwal, Managing Director of the Company said, “The successful launch of the FCCB is reflection of international investors' confidence in the growth prospects and management of the Company. The funds raised by the FCCB will provide an impetus for organic opportunities available to the Company in Oil rig business globally. ”

The company is looking to acquire around 40 oil and gas rigs in the next 3-4 years, Mr. Agarwal added.

The stock closed today at Rs. 345 on NSE, up by 0.23% compared to previous close of Rs. 344.20. The stock touched an intraday high of Rs. 358.00 and low of Rs. 342.